200705 IT Talent Attraction and Retention Workshop · IT Talent Attraction and Retention Workshop...

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Gail Gail SturgessSturgess

2929thth May 2007May 2007

IT Talent Attraction and RetentionIT Talent Attraction and RetentionWorkshopWorkshop

Hi

My name is Gail Sturgess from TalentAlign.com. This workshop is about IT

Talent Attraction and Retention and was held at, and sponsored by, Simba South

Africa, Gauteng on the 29th May 2007

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OrganisationalOrganisational

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•• Performance Performance ImprovementImprovement

•• Organisation DesignOrganisation Design

•• Strategic Workforce Strategic Workforce PlanningPlanning

•• Talent ManagementTalent Management

•• Competency Competency ManagementManagement

•• Career ManagementCareer Management

•• IT Role DescriptionsIT Role Descriptions

www.talentalign.comwww.talentalign.com

© TalentAlign.com (2007), except where otherwise acknowledged

BIG Thank You!!!!BIG Thank You!!!!

A BIG thanks to Simba South Africa for sponsoring this workshop. Simba

sponsored the venue and a really wonderful lunch, I gave of my time free of

charge.

This means that delegates are not charged a fee for attending so we had a good

turnout of people from a number of different companies.

Thanks to you as well for your constructive and information input.

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South Africa TodaySouth Africa Today

�� Economic growth trebled (average 3% pa)Economic growth trebled (average 3% pa)

–– Longest period of sustained growth since 2Longest period of sustained growth since 2ndndWWWW

�� Private sector fixed investment up 4.5% paPrivate sector fixed investment up 4.5% pa

�� Fiscal Deficit below 3% of GDPFiscal Deficit below 3% of GDP

�� Lower inflation and interest ratesLower inflation and interest rates

�� Reserve BankReserve Bank’’s gold and foreign exchange s gold and foreign exchange reserves risen to US$15 billionreserves risen to US$15 billion

The first three slides don’t really have much to do with IT Talent Attraction and

Retention, but are here to remind us just how far we, South Africans, have come

in the past 15 years.

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Proudly South AfricanProudly South African

�� South Africa, almost alone amongst emerging market economies, isSouth Africa, almost alone amongst emerging market economies, is set to set to escape virtually unscathed from the latest bout of investor paniescape virtually unscathed from the latest bout of investor panic sweeping c sweeping the developing world's fragile economies (The Times, London, Augthe developing world's fragile economies (The Times, London, August 2001)ust 2001)

�� The SA banking sector has been consistently ranked in the top 10The SA banking sector has been consistently ranked in the top 10 in terms in terms of competitiveness (MD, Switzerland). When Nelson Mandela was of competitiveness (MD, Switzerland). When Nelson Mandela was inaugurated President in 1994, SA was insolvent (liabilities excinaugurated President in 1994, SA was insolvent (liabilities exceeded eeded assets).assets).

�� Today the Government's deficit is negligible Today the Government's deficit is negligible -- one of only a handful of one of only a handful of countries in this position. We've had single digit inflation sincountries in this position. We've had single digit inflation since 1993 ce 1993 --following 20 years of doublefollowing 20 years of double--digit inflation.digit inflation.

�� Mortgage rates are at their lowest level since 1988.Mortgage rates are at their lowest level since 1988.

�� South Africa is one of only 12 countries, where we can drink watSouth Africa is one of only 12 countries, where we can drink water from a er from a tap. Our tap water was found to be the 3rd best quality in the etap. Our tap water was found to be the 3rd best quality in the entire world.ntire world.

�� Remember 15 years ago, in 1986: A state of emergency was declareRemember 15 years ago, in 1986: A state of emergency was declared White d White men did two years compulsory military service * 64 184 black peomen did two years compulsory military service * 64 184 black people were ple were removed from "white areas" * 3989 people were detained without tremoved from "white areas" * 3989 people were detained without trial * Our rial * Our economic growth rate was 0.7 percent economic growth rate was 0.7 percent -- today it is 3% * 64 countries had today it is 3% * 64 countries had sports boycotts against SA!!!sports boycotts against SA!!!

by Guy Lundy of Dimension Data Business Solutions by Guy Lundy of Dimension Data Business Solutions

This slide and the next one come from a presentation of Guy Lundy of

Dimension Data Business Solutions. He has traveled widely and is concerned

that South Africans don’t seem to have a sense of pride in their country and in

being South African. He takes us through a number of “successes” that …

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Proudly South AfricanProudly South African

�� South African wines win international awards every year and we hSouth African wines win international awards every year and we have the longest ave the longest wine route in the world.wine route in the world.

�� Nelson Mandela, an international icon of forgiveness, tolerance,Nelson Mandela, an international icon of forgiveness, tolerance, and humanity is and humanity is OUR OUR favouritefavourite son. son.

�� The Kruger Park has the most innovative management of a nationalThe Kruger Park has the most innovative management of a national park park anywhere in the world anywhere in the world -- and is the world's most profitable game park.and is the world's most profitable game park.

�� EskomEskom is the largest producer of coalis the largest producer of coal--fired electricity in the world and South fired electricity in the world and South Africans pay the least for electricity in the world.Africans pay the least for electricity in the world.

�� South African Breweries is the 4th largest brewer in the world aSouth African Breweries is the 4th largest brewer in the world and produces over nd produces over 50% of China's beer!50% of China's beer!

�� Mercedes Benz C Class, BMW 3 Series and VW Golf/Mercedes Benz C Class, BMW 3 Series and VW Golf/JettaJetta vehicles for all rightvehicles for all right--hand drive markets throughout the world are produced in South Afhand drive markets throughout the world are produced in South Africa.rica.

�� The Cape Peninsula has more species of plants per hectare than aThe Cape Peninsula has more species of plants per hectare than any other area ny other area of the world.of the world.

�� Magnificent highways, warm, friendly, vibrant rainbow people! TMagnificent highways, warm, friendly, vibrant rainbow people! The world's most he world's most progressive Constitution progressive Constitution KreepyKreepy KrauliesKraulies -- a South African invention a South African invention -- MrsMrs Ball's Ball's chutney and biltong. The world's best looking population.chutney and biltong. The world's best looking population.

by Guy Lundy of Dimension Data Business Solutions by Guy Lundy of Dimension Data Business Solutions

… we have achieved in a really short period of time - relatively.

So these slides are included in the presentation more to remind us what it means

to be a South African so that we can be truly Proudly South African!

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ProgramProgram

�� Competency Management Workshop Competency Management Workshop FeedbackFeedback

��WhatWhat’’s Happening out There?s Happening out There?

��Workshop DiscussionWorkshop Discussion

�� SummarySummary

�� Useful InformationUseful Information

�� Snacks and NetworkingSnacks and Networking

The program for the morning is something like this.

Initially I will give some feedback from the Competency Management workshop

held in Johannesburg (hosted by SAB) in November 2006.

Then I will present the findings of a number of research documents from a

variety of sources relating to the situation of skills scarcity that we are facing at

present and into the future.

We will then break and have a discussion between us on our own experiences and

how we addressed them.

I will then summarise and present the recommendations from the research

documents, which are surprisingly similar – or maybe not THAT surprising!

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Competency Workshop FeedbackCompetency Workshop Feedback

�� Comprehensive Comprehensive ““Competency Competency FrameworkFramework”” for ITfor IT–– 93 IT Competencies93 IT Competencies

–– 78 Non78 Non--IT CompetenciesIT Competencies

�� Next Step: Assessment CriteriaNext Step: Assessment Criteria–– Four LevelsFour Levels

�Aware of

�Familiar with

�Proficient in

�Expert in

First, feedback from the Competency Management Workshop.

The workshop outlined what Competency Management is about and a company

presented their findings on attempting to use NQF Unit Standards as the basis for

their Competency Management.

After the workshop, in compiling the Role Descriptions available on

TalentAlign.com, I have compiled a comprehensive list of competencies “used”

in IT – 93 IT Competencies and 78 Non-IT Competencies.

The next task is to create the assessment criteria for each of the competencies

over the four levels. If any organisation would like to be part of this process I

would appreciate the input to ensure an accurate and usable output that can be

incorporated into Competency Management systems.

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Sample IT CompetenciesSample IT CompetenciesCompetency DescriptionCompetencyFamily

The controls that are included within systems and applications software and the steps used in their development

Applications Security

Applications Development

The application of automated systems to the support of specific business functions or processes. E.g.: Business Systems, Messaging and Groupware, Content Management Systems, Enterprise Resource Planning

Application Systems


Tools, techniques and procedures for the successful implementation of Application Software. E.g.: SDLC guidelines.

Application Implementation


Software tools that automate or assist part of the development process. E.g.: Oracle Developer 2000, Business Objects, Select.

Application Development Tools


Organised and documented sets of techniques, intended to facilitate the structured development of applications. E.g.: SSADM, DSDM, Objectory/UML.

Application Development Methods, Techniques and Standards


Tools and techniques (manual or automated) that can be used to document an understanding of the structure, relationships and use of information within an organisation. E.g.: information usage model, entity model, class diagram, relational data model, data flow model.

Information Modelling Tools

Systems Management

Business intelligence (BI) is a broad category of application programs and technologies for gathering, storing, analysing, and providing access to data to help enterprise users make better business decisions. BI applications include the activities of decision support, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting, and data mining.

Business Intelligence (BI)

Systems Management

A methodology used to create a plan for how an organisation will resume partially or completely interrupted critical function(s) within a predetermined time after a disaster or disruption including methods and techniques for risk management, business impact analysis, countermeasures and contingency arrangements relating to the serious disruption of ICT services. E.g.: fallback location/services, mobile back-up, diversity.

Business Continuity Planning

Systems Management

These are “samples” of the IT competencies. They are structured into “families”.

So this shows the applicable family, some of the “competencies”, and the

competency description.

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Sample NonSample Non--IT CompetenciesIT Competencies

Competency DescriptionCompetency

The process of assisting individuals to set goals then support the execution of the goals through establishing strategy and providing feedback, insight and guidance to enable the individual to reach their fullest potential.

Coaching

The management of the process of implementing major changes in IT, business processes, organisational structures, and job assignments to reduce the risks and costs of change, and to optimiseits benefits, focussing on the issues of managing the resistance and discomfort experienced by people in an organisation when new processes or technology are introduced.

Change Management

The techniques used in the process of planning expenditures on assets whose cash flows are expected to extend beyond one year. E.g: DCF, NPV, IRR, Payback.

Capital Budgeting Techniques

Sets of coordinated tasks and activities, conducted by both people and equipment, that will lead to accomplishing a specific organisational goal.

Business Processes

A systematic approach to reviewing and improving business processesBusiness Process Management

The business environment relating to own sphere of work (own organisation and/or closely associated organisations, such as customers, suppliers, partners), in particular those aspects of the business that the specialism is to support (i.e. localised organisational awareness from a technical perspective).

Business Environment

The functional structure of businesses and other organisations; their mission, objectives, strategies and critical success factors.

Business Characteristics

Principles, methods, techniques and tools for the preparation and monitoring of budgets to minimise costs and ensure cost-effectiveness.

Budgets

These are samples of Non-IT competencies.

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Competency ManagementCompetency Management► Foundation for nearly all workforce development initiatives.

► Defining competency models for your organization, assessing skill levels through skill assessments and then analyzing gaps provides the essential information for strategic planning for training, staffing, performance management, and succession planning.

► With a solid competency model to define and integrate all workforce planning and management, an organization can tackle numerous initiatives such as:

� Staffing � Career Development � Project Team Building � Performance Management

� Succession Planning � Targeted Training Initiatives � Total Quality Management � Certifications � Re-organisation

Competency Management is the foundation for nearly all “workforce

development” initiatives especially the important issues of understanding the

competencies needed to drive strategy and where and in what numbers these

competencies exist in the organisation.

We will see later in the workshop how this becomes important for IT Talent

Strategy.

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SubjectSubject

Improve IT StaffImprove IT Staff

Attraction and RetentionAttraction and Retention

““In the end, all business operations can be reduced to In the end, all business operations can be reduced to three words: people, product and profits. Unless youthree words: people, product and profits. Unless you’’re re a good team, you cana good team, you can’’t do much with the other two.t do much with the other two.””

Lee IacoccaLee Iacocca

And now onto the workshop topic “IT Staff Attraction and Retention”. And what

we are really trying to address is how to get better at attracting and retaining the

core talent needed by the organisation – in a period of scarcity!

This quote from Lee Iacocca reminds us that without good talent in a good team,

organisations will not achieve the products and profits that they strive to achieve.

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WhatWhat’’s Happening Out There?s Happening Out There?

�� Retirement of Retirement of ““babybaby--boomersboomers””

�� Negative population growth Negative population growth ratesrates

�� Fewer university graduatesFewer university graduates

�� US 500 largest companies US 500 largest companies ––lose 50% senior management lose 50% senior management by 2012by 2012

�� Lack of employee trustLack of employee trust

�� 83% searching for jobs in next 83% searching for jobs in next 22--3 years3 years

�� Fierce competition for next two Fierce competition for next two decadesdecades

�� Reduction of EU economic Reduction of EU economic growth by 3%growth by 3%

So … What’s Happening Out There?

What is happening is the result of negative population growth rates in developed

world countries since the end of the second world war. The “baby-boomers” are

about to start retiring but there is just not the talent available to take their place.

In 1997 McKinsey & Company coined the term “the war for talent” as a result of

research on talent management at the time. In 2000 they conducted a second

round of surveys and came to the conclusion that the “war for talent” would

persist for at least the next two decades, i.e. until at least 2020.

There are also fewer students going to universities and following “technical”

qualifications. So, there just are not sufficient, qualified and experienced people

to replace those who will be retiring over the next 5 to 15 years.

This is going to impact on the ability of organisations to grow in line with

business plans, and can even impact the economic development prospects of

countries.

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Impact on IT IndustryImpact on IT Industry

�� US shortage of 300000 IT people US shortage of 300000 IT people (Source: US (Source: US

Bureau of Labor Statistics)Bureau of Labor Statistics)

�� Europe shortage of 3.8 million people Europe shortage of 3.8 million people (Source: Center for Effective Organizations 2001)(Source: Center for Effective Organizations 2001)

�� Growing shortage of experienced IT Growing shortage of experienced IT professionalsprofessionals

�� Declining student enrolments Declining student enrolments –– GLOBAL!GLOBAL!

The impact on the IT Industry is significant with considerable current and

forecast shortages of IT talent, and declining university enrolments – on a

GLOBAL basis – even in South Africa!

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Impact on South AfricaImpact on South Africa

�� US twice raised the annual immigration US twice raised the annual immigration quotas for IT peoplequotas for IT people

�� Emigration is already on the increaseEmigration is already on the increase–– Management = 0% (2005) Management = 0% (2005) –– 17% (2006)17% (2006)–– Systems Development = 5% (2005) Systems Development = 5% (2005) –– 6% (2006)6% (2006)–– Operations = 14% (2005) Operations = 14% (2005) –– 30% (2006)30% (2006)–– Support = 8% (2005) Support = 8% (2005) –– 18% (2006)18% (2006)

– Source: 2005/2006 P-ECS IT Salary Survey

�� Growing shortage of high level skillsGrowing shortage of high level skills�� Growing shortage of experienceGrowing shortage of experience�� Inability to achieve required economic growth Inability to achieve required economic growth ratesrates

The impact on South Africa can be devastating.

Our IT talent will be sought out by the developing world countries, and they will

leave. NOT because of anything bad in South Africa, not because of crime, not

because of lack of opportunities – BUT because they CAN! Exciting

opportunities with big salaries attached will be on offer. And business in South

Africa will find it extremely difficult to compete.

Two years does not make a trend, however the increases in emigration between

the 2005 and 2006 IT Salary Surveys of P-E Corporate Services indicates that

there well could already be increased emigration starting to happen.

The 2010 World Cup has shown shortages of high level skills in the engineering

world – a close relation of ICT, and the impact on our ability to achieve the

required economic growth has already been reported in the press. This will

impact on our ability to reduce unemployment and the results of this could have

dire consequences.

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Impact on BusinessImpact on Business

�� Increased competition for scarce skills Increased competition for scarce skills and experienceand experience

�� Higher compensation packagesHigher compensation packages

�� Higher cost of recruitmentHigher cost of recruitment

�� Higher cost of staff turnoverHigher cost of staff turnover

�� Inability of IT to deliver Inability of IT to deliver itoito organisation organisation strategystrategy

The impact on business is financial.

Higher compensation packages as organisations compete for scarce skills and

resources and higher cost of recruitment. The staff turnover time cycle will

increase – it is going to take much longer from the time one employee starts

looking for a position to the replacement employee being fully operational. So,

longer periods of lower productivity and more pressure on the remaining staff.

All this will impact on the ability of IT to delivery in terms of organisational

strategy, putting pressure on the organisation as a whole.

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Impact on Talent ManagementImpact on Talent Management

�� Higher Expectations Higher Expectations –– more than a more than a ““jobjob””

–– Development and AdvancementDevelopment and Advancement

–– FlexibilityFlexibility

–– Work fewer hoursWork fewer hours

�� Family DemandsFamily Demands

–– Child CareChild Care

–– Elder CareElder Care

�� Work EthicWork Ethic

–– Weak skillsWeak skills

–– Poor work Poor work ““ethicethic””

The impact on the talent of the organisation, and it’s management, is already

becoming apparent.

IT employees remember well the employment cycles that have dominated the

industry since the early 1990s. The “blood letting” of IT talent in the early 1990s

as organisations “down-sized” / “right-sized”, the scurry for experienced skills

leading up to Y2K, the release of staff post Y2K, another short-lived scurry for

web-enabled staff as dot.com became a “flavour of the day”, the release of skills

with the “dot.bomb” reality, and the hiatus of job opportunities leading up to

2005.

This has resulted in a complete break-down of trust between employer and

employee as far as “loyalty” is concerned. And it will never come back – at least

not the way it was.

Employees now want more than a “job”, they want opportunity and they want

flexibility. Younger generations want more time for child care while older

generations want more time for elder care as the older generations are now living

longer than before.

And a new feature of our “employee marketplace” – the falsification of

qualifications to “qualify” for a position.

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Impact on Organisational TalentImpact on Organisational Talent

�� Diverse WorkforceDiverse Workforce–– More people of difference ages, cultures, and sex More people of difference ages, cultures, and sex than ever beforethan ever before� Matures (born 1930 – 1945)� “Baby-Boomers” (born 1946 – 1964)� Gen Xs (born 1961 – 1981)� Gen Ys (born 1975 – 1994)

–– Workplace diversityWorkplace diversity� Needs differences� Goals differences� Attitudinal differences� Financial differences

–– ““OneOne--sizesize--fitsfits--allall”” HR policies and procedures no HR policies and procedures no longer appropriatelonger appropriate

There is more diversity in the workplace today than ever before – diversity in

terms of age, gender and culture.

So organisations need to start to address the needs, goals, attitudes and financial

requirements of this diverse workforce.

The “one-size-fits-all” policies and procedures of traditional HR systems are just

no longer relevant. Strategies, policies and procedures need to be reviewed to

take into account the needs of the workforce today and going into the future – up

to 2020 in fact.

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Impact on Impact on ““Bottom LineBottom Line””

�� Employees with above average attitude Employees with above average attitude towards their work towards their work (Source: Gallup)(Source: Gallup)

–– 38% higher customer satisfaction38% higher customer satisfaction

–– 22% higher productivity22% higher productivity

–– 27% higher profits27% higher profits

Earlier studies talked about employee “attitude”, later studies talk about

employee commitment, and more recent studies have coined the phrase

“employee engagement”. Employee engagement is defined as the “emotional

commitment that an employee has to the success of the organisation”. A couple

of definitions are included in later slides.

But this important research undertaken by Gallup tested the impact on the

organisation of the level of commitment or “engagement”.

Basically …. engaged employees:

•Produce 38% higher customer satisfaction

•Have 22% higher productivity

•Produce 27% higher profits

These figures will be supported by other research in later slides.

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Research Research –– Center for Effective OrganizationsCenter for Effective Organizations

�� 4500 Knowledge Workers and 4500 Knowledge Workers and ManagersManagers

�� 3 Questions:3 Questions:

–– How can companies compete in highly How can companies compete in highly competitive global labour market?competitive global labour market?

–– What strategies are needed to attract, What strategies are needed to attract, develop, motivate and retain key skills?develop, motivate and retain key skills?

–– What new approaches for increasingly What new approaches for increasingly mobile, wellmobile, well--networked labour force?networked labour force?

Around 2000 the Center for Effective Organisations (CEO) undertook research

amongst 4500 knowledge workers and managers. These questions are not the

questions asked, they are the questions that they wanted the research to answer.

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�� Retention:Retention:

–– ““the desire of employees to remain with the desire of employees to remain with the companythe company””

�� Commitment:Commitment:

–– ““the emotional commitment of the the emotional commitment of the employee to the success of the companyemployee to the success of the company””

The research defined Retention and Commitment (now Engagement).

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�� Job Job ““qualitiesqualities””

–– Adequate Development OpportunitiesAdequate Development Opportunities

–– Career AdvancementCareer Advancement

–– Financial RewardsFinancial Rewards

–– Influence/autonomyInfluence/autonomy

–– Innovation and RiskInnovation and Risk

–– Job SecurityJob Security

–– Opportunity for Career SelfOpportunity for Career Self--ManagementManagement

–– PayPay--forfor--IndividualIndividual--PerformancePerformance

–– PayPay--forfor--OrganisationalOrganisational--PerformancePerformance

–– Professional SatisfactionProfessional Satisfaction

–– Strategic ClarityStrategic Clarity

–– Work/life BalanceWork/life Balance

The research groups was given a number of job “qualities” and they were asked

questions relating to these “qualities”

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Differences By Career Stage

WWhhaatt EEmmppllooyyeeeess SSAAYY iiss iimmppoorrttaanntt??

EEaarrllyy CCaarreeeerr MMiidd--ccaarreeeerr LLaattee CCaarreeeerr

� Work/life Balance

� Financial Rewards

� Job Security

� Professional Satisfaction

� Career Advancement

� Work/Life Balance

� Job Security


� Influence/autonomy



� Job Security



� Professional satisfaction

AAccttuuaall DDrriivveerrss ooff RReetteennttiioonn



� Pay-for-Organisational-Performance

� Pay-for-Individual-Performance

� Innovation and Risk

� Career advancement





� Job Security


� Innovation and risk

AAccttuuaall DDrriivveerrss ooff CCoommmmiittmmeenntt



� Strategic Clarity

� Adequate Development Opportunities









� Opportunity for Career Self-Management







The research results were separated into:

1. What employees SAY is important

2. What actually drives Retention

3. What actually drives Commitment/Engagement

This slide shows the results of the research by Career Stage. Early Career

(Generation Ys), Mid-career (Generation Xs), and Late Career (Baby

Boomers)

What is interesting is the significance of “pay-for-organisational-performance”,

“strategic clarity” and “career advancement”. This is supported by most

other research in this area.

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Differences By Gender

WWhhaatt EEmmppllooyyeeeess SSAAYY iiss iimmppoorrttaanntt??

MMeenn WWoommeenn


� Job Security




� Work/Life Balance

� Job Security




AAccttuuaall DDrriivveerrss ooff RReetteennttiioonn

MMeenn WWoommeenn






� Career advancement

AAccttuuaall DDrriivveerrss ooff CCoommmmiittmmeenntt

MMeenn WWoommeenn













This slide shows the results of the research by Gender across all age groups.

Again “pay-for-organisational-performance”, “strategic clarity” and “career

advancement” are important.

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� Pay-for-Organisational-Performance� Adequate Development Opportunities� Strategic Clarity� Opportunity for Career Self-Management� Work/life Balance

� Pay-for-Organisational-Performance� Influence/autonomy� Strategic Clarity� Innovation and Risk � Professional Satisfaction� Job Security� Opportunity for Career Self-Management

WomenWomenMenMen

Actual Drivers of CommitmentActual Drivers of Commitment

� No significant drivers

� Career Advancement� Pay-for-Organisational-Performance� Pay-for-Individual-Performance� Innovation and Risk

WomenWomenMenMen

Actual Drivers of RetentionActual Drivers of Retention

� Work/Life Balance� Job Security� Financial Rewards� Influence/autonomy� Professional Satisfaction

� Work/life Balance� Job Security� Financial Rewards� Influence/autonomy� Career Advancement

WomenWomenMenMen

What Employees SAY is important?What Employees SAY is important?

Differences By Gender – Mid-Career

This final slide on this research shows the results by Gender for the Mid-career

group. This is the group that needs to take over the positions that the baby

boomers will vacate.

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Employee Employee ““EngagementEngagement””

�� Behaviours of Behaviours of ““engagedengaged”” employeesemployees

–– Belief in the organisationBelief in the organisation

–– Desire to work to make things betterDesire to work to make things better

–– Understanding of business context and the Understanding of business context and the ‘‘bigger bigger picturepicture’’

–– Respectful of, and helpful to, colleaguesRespectful of, and helpful to, colleagues

–– Willingness to Willingness to ‘‘go the extra milego the extra mile’’

–– Keeping up to date with developments in the fieldKeeping up to date with developments in the field

“’“’Engaged EmployeesEngaged Employees’’ are emotionally connected are emotionally connected to the organization and cognitively vigilantto the organization and cognitively vigilant””

Source: IESSource: IES

So … what does an “engaged employee” look like. This slide comes from

research undertaken by IES and provides another, similar definition of

“engagement”.

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Employee Employee ““EngagementEngagement””

�� Gallup SurveyGallup Survey–– 29% actively engaged in their jobs29% actively engaged in their jobs

–– 54% not engaged in their jobs54% not engaged in their jobs

–– 17% actively disengaged from their jobs17% actively disengaged from their jobs

�� Disengaged EmployeesDisengaged Employees–– Miss an average of 3.5 more days per yearMiss an average of 3.5 more days per year

–– Are less productiveAre less productive

–– Cost the US economy +/Cost the US economy +/-- $300 billion per $300 billion per year (Financial News, March 2001)year (Financial News, March 2001)

You will remember the Gallup results in a previous slide, this is one of the

follow-up slides.

The research indicated that:

•29% of employees are “engaged” in their jobs

•A staggering 54% are “not engaged” in their jobs

•17% of employees are actively disengaged – this does not necessarily mean that

they are looking for another job!

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DisDis--/Unengaged Employees/Unengaged Employees

�� Want to be TOLD what to doWant to be TOLD what to do–– Concentrate on Concentrate on ““taskstasks””, rather than goals and outcomes, rather than goals and outcomes

–– Know when they are Know when they are ““finishedfinished””

–– Someone else to Someone else to ““blameblame”” when things go wrongwhen things go wrong

�� DonDon’’t have productive relationship with management and t have productive relationship with management and colleaguescolleagues–– Feel that contributions being overlookedFeel that contributions being overlooked

–– Feel that potential not being tappedFeel that potential not being tapped

�� Do the least amount of work possibleDo the least amount of work possible–– ““Lower the barLower the bar”” for themselvesfor themselves

�� Sow seeds of negativitySow seeds of negativity–– Mistrust and donMistrust and don’’t respect managementt respect management

–– Undermine the work of othersUndermine the work of others

–– Repeatedly refuse engagement opportunitiesRepeatedly refuse engagement opportunities

�� Damage functioning of organisationDamage functioning of organisation

What do “Dis-” and “Unengaged” employees look like.

Basically that want to be told exactly what to do, and that is exactly what they do

– right or wrong. They do not consider any other possibilities to achieve the

outcomes, in fact the only outcome that concerns them is that they complete the

job exactly as told. They do as little as possible to achieve this.

They also don’t have productive relationships with management especially, or

with colleagues and they mistrust management.

The important aspect of this behaviour is that it damages the effective

functioning of the organisation.

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So So …… Where to from Here?Where to from Here?

�� ““ThingsThings”” must change!must change!

�� Starting pointsStarting points

–– LeadershipLeadership

–– StrategyStrategy

�� LeadershipLeadership

–– Talent Strategy is a strategic corporate focus!Talent Strategy is a strategic corporate focus!

�� StrategyStrategy

–– Performance Improvement ModelPerformance Improvement Model

So.. Where to from Here?

Well – the one thing we all know for sure is “things” must change!

But what, and where to start?

All research on this topic indicates that there are two starting points:

•Leadership, and

•Strategy.

It is important that the organisations “leaders” (not managers!) understand that

“talent strategy” is a strategic corporate focus – and cannot merely be left to an

HR department to define and implement.

A “strategy” is about a process for continual “performance improvement” that

enables the organisation to achieve its mission and objectives.

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LeadershipLeadership

�� Human Capital = Human Capital = The sum total of all knowledge, The sum total of all knowledge,

experience, and experience, and performance capabilityperformance capability an organisation an organisation possesses that can be applied to create wealthpossesses that can be applied to create wealth

�� It DOES impact on bottom lineIt DOES impact on bottom line

–– Disengaged employees Disengaged employees –– 28% less revenue28% less revenue

–– Not engaged Not engaged –– 23% less revenue23% less revenue

–– Employee engagement Employee engagement DRIVESDRIVES resultsresults

– Source: New Century Financial Corporation

““Leadership is not magnetic personalityLeadership is not magnetic personality——that can just as well be a glib tongue. It is that can just as well be a glib tongue. It is

not not ‘‘making friends and influencing peoplemaking friends and influencing people’’——that is flattery. Leadership is lifting a that is flattery. Leadership is lifting a

person's vision to higher sights, the raising of a person's perfperson's vision to higher sights, the raising of a person's performance to a higher ormance to a higher

standard, the building of a personality beyond its normal limitastandard, the building of a personality beyond its normal limitations.tions.””

Peter F. Peter F. DruckerDrucker

This is one of my favourite definitions. Human Capital is about the

“performance capability” within the organisation that can be used to generate

wealth – or investor return on investment. From the “people” aspect, it is the

knowledge and experience of the workforce that creates this “performance

capability”.

Using the results of the New Century Financial Corporate in conjunction with the

results of the Gallup survey we looked at earlier, the following unfolds:

•17% of employees produce 28% less revenue than the “engaged” employees,

and

•54% of employees produce 23% less revenue than the “engaged” employees.

Just a 5% difference!!!

Another favourite quote is this one by Peter Drucker – especially the second

sentence.

Leadership is:

•lifting a person’s vision to higher sights

•Raising of a person’s performance to a higher standards

•The building of a personality beyond its normal limitations.

If your “leadership development” programs don’t achieve this – they are

“management programs” – NOT “leadership programs”!

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Leadership ResponsibilitiesLeadership Responsibilities

�� Direction:Direction:–– How the organisation carries out its mission and How the organisation carries out its mission and progressively moves towards a destinationprogressively moves towards a destination

�� Purpose:Purpose:–– Establishing personal fulfillment and meaning in the Establishing personal fulfillment and meaning in the organisationorganisation’’s vision, mission, and goalss vision, mission, and goals

�� Alignment:Alignment:–– Relationship between individualsRelationship between individuals’’ attitudes, drives, attitudes, drives, dreams, goals, and abilities and the needs of the dreams, goals, and abilities and the needs of the organisationorganisation

Source: Source: ““Here Today, Here TomorrowHere Today, Here Tomorrow”” Gregory P SmithGregory P Smith

Leadership has 3 basic responsibilities:

Direction – leading the organisation towards its chosen destination taking mission

and values into consideration,

Purpose – ensuring that the workforce is “engaged” with the vision, mission and

goals of the organisation, and

Alignment – ensuring that the attitudes, drives, dreams, goals and abilities of the

workforce are aligned with the needs of the organisation - and visa versa.

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Leadership CompetenciesLeadership Competencies

� Team orientation

� Flexibility

� Intuition

� Ability to “teach” others

� Enthusiasm

� Problem-solving

� Tactical vision

� Ability to learn quickly

� Manage change

� Manage and sell ideas

� Strategic vision

� Provide purpose and values

� Lead by example

� Create change

� Innovation

� Create a charged work

environment

� Communication skills

� Ability to remove barriers and

obstacles

� Ability to unlearn

� Sense of humour

ManagementManagementLeadershipLeadership

Competencies Managers Need Today

Source: Source: ““Here Today, Here TomorrowHere Today, Here Tomorrow””

There has been for some time – and there continues to be – much “noise” about

“management” vs “leadership”. All the past writing about leadership style has

focused on how different styles affect the motivation and productivity of

employees. When we question the conventional purpose of leadership and offer a

different foundation, we get a very different conception of leadership.

The new purpose of leaders is to ensure that new futures are created as rapidly as

their external markets evolve. All organisations now have two equally important

tasks: to deliver today’s results, and to create the future. The principle of division

of labour suggests that there are two separate functions for these very different

tasks. Management takes care of today’s business, and leadership champions

changes to enhance competitive advantage.

Management focus is also changing. No longer will management be

concentrated on “controlling people”, but rather on controlling business

processes, through people. The emphasis is changing to delivery – away from

control.

From the book “Here today, Here tomorrow” by Greg Smith, this is the suggested

list of competencies for Leadership and for Management.

Can managers be leaders? Yes indeed. Must managers be leaders? Not

necessarily. Can anyone be a leader? Absolutely! Leadership, as defined by

creating the future, can come from ANYWHERE in the organisation.

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StrategyStrategy

�� AnalysisAnalysis

–– Perception AnalysisPerception Analysis

–– Strategic Alignment AnalysisStrategic Alignment Analysis

–– Performance AnalysisPerformance Analysis� Organisational Systems

� Management Systems

� Physical and Technical Systems

� Human and Social Systems

–– Intervention Analysis and SelectionIntervention Analysis and Selection

–– Feasibility AnalysisFeasibility Analysis

�� DesignDesign

�� DevelopDevelop

�� ImplementImplement

�� EvaluateEvaluate

Strategy for continuous performance improvement is an iterative process. This

does not mean it needs to be done 6-monthly, annually, every second year – or at

any specific set interval. Evaluation should be a continual process that, if

shortfalls are identified lead back to analysis.

The analysis identifies the “as is” situation across organisational, management,

physical and technical, and human and social systems in the organisation, defines

the “to be” situation, and calculates the “gaps”.

Only once the “gaps” are identified can “interventions” be designed, developed

and implemented.

Then the review process should take place at a pre-determined time in the future,

and the cycle continues.

The Performance Improvement Strategy is about having a clear understanding of

where the organisation is at present, where it intends to go, and how it intends

moving from the “as is” to the “to be” – across a broad range of focus areas

including organisation, management, physical and technical, and human and

social systems within the organisation.

Only once this is done can strategies and activities be designed, developed and

implemented.

But the important aspect is also the need to evaluate on a continual basis, which

takes the process back to the “analysis” step.

“Continuous Improvement” is a “continuous process”.

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Talent StrategyTalent Strategy

�� Organisational Strategy, Goals and ActivitiesOrganisational Strategy, Goals and Activities–– Mission, Purpose, ValuesMission, Purpose, Values–– Goals, Objectives, ProjectsGoals, Objectives, Projects

�� Organisational Structure and RolesOrganisational Structure and Roles–– FunctionalFunctional–– ProductProduct–– CustomerCustomer–– GeographicGeographic–– MixedMixed–– Meet organisation and career management needsMeet organisation and career management needs

�� Performance ManagementPerformance Management–– BSCBSC–– Aligned with organisational goals and objectivesAligned with organisational goals and objectives

�� Competency ManagementCompetency Management–– Competency Competency ““InventoryInventory””–– Identify Identify ““mission criticalmission critical”” competenciescompetencies

What should be taken into account for an effective “Talent Strategy”?

The order presented in this strategy outline is deliberate and based on research shown later on in

this presentation.

Firstly the organisations mission, values, goals and strategies need to be well understood and well

communicated. These form the foundation of any strategic initiative that the organisation

embarks on.

Then, the organisation should be structured in such a way that it is able to deliver in terms of its

mission, values, goals and objectives. No matter the structure of the organisation, it should take

into account BOTH organisational AND career management needs. If one is missing, the

structure will fail.

A good performance management strategy should be in place, whether BSC (Balanced Score

Card) or a derivative of BSC. But the performance management system MUST be aligned with

the goals and objectives of the organisation, and performance measures should lead back to

contribution to organisational performance.

Competency Management is fairly new. The concept of “competency-based” organisations as

opposed to “job-based organisations” was first introduced by the Center for Effective

Organisations in the 1990s. From the structure of the organisation, job (or role) descriptions

should be produced and competency profiles generated that link the competencies needed to the

requirements of the job (role). These Competency Profiles are used to assess the competencies of

staff in the organisation as well as new recruits. This forms the “Competency Inventory” of the

organisation.

Once this is done, key, strategic competencies can be identified and vulnerabilities can be

assessed.

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Talent StrategyTalent Strategy�� Strategic Workforce PlanningStrategic Workforce Planning

–– Next 12 months, and next 5 yearsNext 12 months, and next 5 years–– Identify problem areasIdentify problem areas

�� Staffing and Acquisition StrategyStaffing and Acquisition Strategy–– Recruitment and SelectionRecruitment and Selection–– Engagement and RetentionEngagement and Retention–– Sourcing (permanent, contract, temporary, outsource)Sourcing (permanent, contract, temporary, outsource)

�� Learning and Development StrategyLearning and Development Strategy–– Individual Development PlansIndividual Development Plans–– Development Development ““programsprograms”” (leadership, role specific, technology specific)(leadership, role specific, technology specific)

�� Career Management StrategyCareer Management Strategy–– Career Paths (management, technical, crossCareer Paths (management, technical, cross--functional)functional)–– Coaching and MentoringCoaching and Mentoring

�� Compensation StrategyCompensation Strategy–– ““FairFair””, competitive basic remuneration, competitive basic remuneration–– OrganisationalOrganisational--performance incentive bonusperformance incentive bonus–– Strategic alignment performance incentive bonusStrategic alignment performance incentive bonus

�� Benefits StrategyBenefits Strategy–– By Age, Gender, CultureBy Age, Gender, Culture–– Flexibility, VersatilityFlexibility, Versatility

From the overall strategy and the Competency Inventory, a Strategic Workforce

Plan can be undertaken to assess the competencies needed by the organisation to

achieve its goals, not only over the next 12 months, but for the next 5 years.

This plan brings into play the Staffing and Acquisition Strategy, the Learning and

Development Strategy, and the Career Management Strategy. Leaders can do a

“best fit” analysis to decide how to source the right skills at the right time.

All other strategies can be affected by the Compensation Strategy, so

organisations need to become more creative in terms of compensation strategy,

especially the use of incentive bonuses.

The Benefits Strategy is probably where most “flexibility” can be incorporated to

accommodate the diversity of any given workforce.

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Scope IT Staff RetentionScope IT Staff Retention

�� Alignment with Alignment with organisational strategyorganisational strategy

�� FlowFlow

�� Alignment between Alignment between elementselements

�� FlexibilityFlexibility

�� Frequency of ReviewFrequency of Review

This “Learning and Talent Management” process is the creation of Bersin and Associates.

The process starts with the goals and objectives of the organisation, which leads directly to the

organisation structure and the definition of roles and competencies required to perform those

roles. These are central to the Talent Management processes.

This leads to the Workforce Plan, which leads to Recruiting and On-boarding – introducing the

new employee to the organisation in a positive and constructive way. How many of us have

arrived for our first day at work, only to find that the receptionist knows nothing about us and has

to spend the next half-hour or so finding out where she is supposed to send us. Then the

“manager” concerned is busy in a meeting, so you have to wait some more. Sound familiar???

This is NOT the way to introduce a “scarce resource” to the organisation. They will be on the

“next bus” right back out the door.

From on-boarding to performance management, training and performance support, and succession

planning.

This is all underpinned by the Compensation and Benefits Strategy.

Then, establishing the Competency Inventory of the organisation, and back to the Plan.

The important aspects of this process are the alignment with organisational strategy, the flow

between the different aspects of the overall “Talent Strategy”, and the alignment between the

different elements.

It makes no sense to have the best Performance Management system if the Compensation and

Benefits Strategy is not in alignment.

It is an overall “plan”, an overall “process” for attracting and retaining, especially the core

competencies needed by the organisation.

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What do IT employees Want?What do IT employees Want?

�� Strategic ClarityStrategic Clarity

–– Understand the Understand the ““big picturebig picture”” and how it influences their work and how it influences their work and growthand growth

–– Understand the organisationUnderstand the organisation’’s expectationss expectations

�� Adequate Development OpportunitiesAdequate Development Opportunities

–– Development opportunities Development opportunities –– Training, Workshops, SeminarsTraining, Workshops, Seminars

–– Tuition reimbursementTuition reimbursement

–– Performance feedback and coaching / mentoringPerformance feedback and coaching / mentoring

�� Career AdvancementCareer Advancement

–– Opportunities for growthOpportunities for growth

–– Research and Development opportunitiesResearch and Development opportunities

�� Financial RewardsFinancial Rewards

–– Fair remunerationFair remuneration

–– Pay for Pay for ““teamteam”” successsuccess

–– Pay for organisational successPay for organisational success

But … What do IT employees Want?

The information on this slide does not come from any particular research, but a

combination of all the research results surveyed in producing this presentation. It

is also not in any order except the order that the research used indicated to be a

priority.

IT employees are, generally, creative, learn easily, like to be at the fore-front of

technology, and want early recognition and upward mobility.

They need to understand and “buy into” the strategy and expectations of the

organisation, and they need early development opportunities that will lead to

career advancement.

Financial rewards are important – especially in an environment in which THEY

are the “scarce resource”!

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What do IT employees Want?What do IT employees Want?

�� Work/life BalanceWork/life Balance

–– Solid working relationshipsSolid working relationships

–– Family and teamFamily and team--oriented environmentoriented environment

–– SabbaticalsSabbaticals

–– Flexible work days / work hoursFlexible work days / work hours

–– TelecommutingTelecommuting

�� Influence/autonomyInfluence/autonomy

–– Involvement in decisionInvolvement in decision--making processesmaking processes

�� Opportunity for Career SelfOpportunity for Career Self--ManagementManagement

–– ““RoomRoom”” to do their jobto do their job

�� Professional SatisfactionProfessional Satisfaction

–– Appreciation for their ideas and suggestionsAppreciation for their ideas and suggestions

–– Challenge with responsibilityChallenge with responsibility

–– Challenging workChallenging work

Work / Life Balance and the concepts of flexible work hours and flexible work

days have been important for IT employees since the days of the first computers.

A new concept made entirely possible with technology today is telecommuting.

It is not employees that have a problem with telecommuting, but the old style

“manager” who has the problem. The manager that believes that they need to

“see” the employee between specific hours, the manager that believes that if they

don’t “see” the employee they don’t have “control” over them – THEY have the

problem. But this is precisely the “old style” of management that just won’t

work in the world of “scarce” skills – and LEADERSHIP. Manage the

PROCESS, and let the employee manage their input and output. Provided the

process deliverable is delivered on time, what does it matter WHERE the

employee was located in the delivery process? It is the lack of effective Process

Management that leads to bad “people” management.

IT people also like to be involved in the decision-making process if it involved

them or aspects of their work, and they do not like to be “micro-managed”. They

need to have the “room” to do their job. Good process management reduces the

need for close people management.

Finally, IT people like to be recognised for their “talent” in their sphere of work

and they enjoy new and different challenges, especially challenges that allow

them to grow.

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Drivers of Business Value Drivers of Business Value (*)(*)

�� Performance ManagementPerformance Management–– More than Performance AppraisalMore than Performance Appraisal

–– All processes that align, coach, assess and develop peopleAll processes that align, coach, assess and develop people

–– Central to success of Talent ManagementCentral to success of Talent Management

�� CoachingCoaching–– Internal and/or ExternalInternal and/or External

�� Competency ManagementCompetency Management–– Job DescriptionsJob Descriptions

–– Competency definitionsCompetency definitions

–– Assessment of what drives performance and potentialAssessment of what drives performance and potential

�� Sourcing and RecruitingSourcing and Recruiting–– Identify Identify ““criticalcritical”” jobs jobs –– most impact on achieving goalsmost impact on achieving goals

–– Assess skills and identify gaps in these rolesAssess skills and identify gaps in these roles

–– Forecast requirement for skills in the futureForecast requirement for skills in the future

�� Learning and DevelopmentLearning and Development–– FunctionFunction--driven programsdriven programs

–– Blended learning (collaboration, learning on demand, assessment,Blended learning (collaboration, learning on demand, assessment,simulationssimulations

(*) (*) BersinBersin & Assoc & Assoc ““HighHigh--Impact Talent ManagementImpact Talent Management

We mentioned this research earlier in the Talent Management Strategy part of this presentation. Bersin & Associates conducted research to establish the key drivers of business value from a ‘human capital’ point of view. These are the results.

At the number 1 position is Performance Management. But performance management linked to organisational objectives and goals – not the traditional “performance appraisal” that generally is not really taken that seriously, or, even worse, allows for too much subjectivity and “opinion” of the manager.

Coaching and mentoring is in the second slot. Coaching and mentoring is highly recommended for people development these days, and especially for assisting employees in their career management. Internal and external coaches and mentors are used, depending on the area of development. External coaches are, generally, preferred for “leadership” coaching.

Third is line is Competency Management. Starting with a good and comprehensive description of the job, and the competencies needed to fulfill the responsibilities, tasks and outcomes of the job. Getting to understand what core competencies are needed and where they exist in the organisation helps with recruiting and development planning and is a core requirement for both of these activities.

Sourcing and Recruiting is 4th on the list followed by Learning and Development, with Competency Management providing the input data to these activities to ensure that the right “insourcing” strategy is used and that the right development and performance support programs are put in place.

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Workshop DiscussionWorkshop Discussion

““Here today, here tomorrowHere today, here tomorrow””. Greg Smith. Greg Smith

�� We:We:–– identify jobs with highest turnover and identify jobs with highest turnover and investigate why.investigate why.

–– Conduct postConduct post--exit interviews 30 to 90 days exit interviews 30 to 90 days after exit to establish REAL reasons for after exit to establish REAL reasons for leavingleaving

–– Hold managers accountable for department Hold managers accountable for department turnoverturnover

–– Reward managers for high retentionReward managers for high retention–– Have good orientation programs for new Have good orientation programs for new recruitsrecruits

–– Go out of our way to communicate with Go out of our way to communicate with employeesemployees

More than 2 NoMore than 2 No’’s s ––you need to get serious about retention!you need to get serious about retention!

Yes NoYes No

__ ____ __

__ ____ __

__ ____ ____ ____ __

__ ____ __

__ ____ __

Before we break for a general discussion, ask yourself these questions.

Don’t cheat now – answer all the questions for yourself BEFORE moving on.

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Workshop DiscussionWorkshop Discussion

�� Participants all agreed Participants all agreed -- problems sourcing and problems sourcing and retaining good IT skillsretaining good IT skills

�� Skills Skills ““poachingpoaching”” a problem, especially BEE talenta problem, especially BEE talent

�� Some have tried different strategies, others battling Some have tried different strategies, others battling with with ““corporatecorporate”” policiespolicies

�� The Gen The Gen YsYs are VERY different to Babyare VERY different to Baby--boomers and boomers and Gen Xs, they want:Gen Xs, they want:

–– Technology gadgets and gizmosTechnology gadgets and gizmos

–– Shopping vouchersShopping vouchers

�� Some working with Some working with SETAsSETAs, mainly at , mainly at ““entryentry”” level level ––problems with problems with ““growinggrowing”” people within the organisationpeople within the organisation

�� CSSA is introducing a CSSA is introducing a ““ProfessionalProfessional”” qualification later qualification later in 2007 in 2007 –– watch out for this. Could be used as watch out for this. Could be used as ““internshipinternship”” with with SETAsSETAs..

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What Companies Should Do!What Companies Should Do!

�� Talent mindset at ALL levelsTalent mindset at ALL levels

�� Create an Employee Value Proposition Create an Employee Value Proposition

(EVP)(EVP)

�� Recruit great talent CONTINUOUSLYRecruit great talent CONTINUOUSLY

�� Grow great leadersGrow great leaders

�� Differentiate and AffirmDifferentiate and Affirm

–– Top performersTop performers

–– Low performersLow performers

McKinsey & Co McKinsey & Co ““The War for TalentThe War for Talent””

This section of the workshop, after the general discussion, presents the suggestions made by the

different researchers in this topic. The aim of this section is to help you to compile your

ideas of what you would like to implement for “effective IT staff attraction and retention”,

and to create a plan to achieve it.

First, back to McKinsey & Company’s “The War for Talent”. As a result of their research, they

identified these five elements of a successful talent formula.

1. The need to “instill” a talent mindset at ALL levels of the organisation – starting with senior

(executive) management.

2. The need to create a “winning” EVP that attracts scarce talent – and KEEPS them by means

of:

• Exciting work

• Good management

• Remuneration commensurate with the value that they create (look at the Platinum

mine situation in South Africa right now!)

• Growth and development opportunities.

3. Be “on the prowl” for top talent – don’t let good talent slip through the corporate fingers.

There are organisations that will employ “good talent” even if they don’t have an immediate

position for them!

4. Realise the tremendous amount of human potential already in the organisation by developing

and growing leaders – great leaders!

5. Don’t treat all staff the same – they don’t all contribute the same! Leading companies assess

their talent and differentiate in how they invest in their top performers and in their poor

performers. This investment can include development opportunities, job opportunities, and

challenging growth opportunities. It is not limited to “money”!

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Talent Mindset MaturityTalent Mindset Maturity

�� Superior talent at all levels is single most import Superior talent at all levels is single most import way to winway to winin futurein future

�� Talent Management has Talent Management has same or more attentionsame or more attention as as budgets or operations issuesbudgets or operations issues

�� Spend 30%Spend 30%--40%40% time on strengthening talent pooltime on strengthening talent pool

�� Management is responsibleManagement is responsible for strengthening respective for strengthening respective talent poolstalent pools

�� EVPEVP attracts talented people to the organisation attracts talented people to the organisation –– and and keeps themkeeps them

�� CultureCulture of candid feedback and helpful coachingof candid feedback and helpful coaching

�� Aggressive recruitmentAggressive recruitment at all levelsat all levels

�� Award top performersAward top performers with highly developmental job with highly developmental job experiences, differentiated compensation, mentoring.experiences, differentiated compensation, mentoring.

�� Development plans for Development plans for core performerscore performers

�� Talent Review processTalent Review process throughout organisationthroughout organisation

�� Take Take ““concreteconcrete”” actionsactions –– promotions promotions ↔↔ forced attritionforced attrition

�� Believe strengthening talent pool creates huge impact Believe strengthening talent pool creates huge impact ––take courageous actionstake courageous actions to do so.to do so.

McKinsey & Co McKinsey & Co ““The War for TalentThe War for Talent””

Yes NoYes No

__ ____ __

__ ____ __

__ ____ __

__ ____ __

__ ____ __

__ ____ __

__ ____ __

__ ____ __

__ ____ __

__ ____ __

__ ____ __

__ ____ __

McKinsey & Company’s “The War for Talent”, suggest these statements to

identify the organisation’s level of “Talent Mindset Maturity”.

We suggest that you use it as an “action plan” for achieving a Talent Mindset in

the organisation. It’s no “cake walk” – it will take time, planning and energy.

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Employment Value PropositionEmployment Value Proposition

�� EVP = the sum of everything EVP = the sum of everything the people in the company the people in the company experience and receive while experience and receive while they are a part of the they are a part of the organisation.organisation.

�� The balance between what an The balance between what an employee receives in return employee receives in return for their performance on the for their performance on the job.job.

�� The organisationThe organisation’’s s ““brandbrand””..

�� The The ““promisepromise”” that the that the company makes to company makes to fullfillfullfill the the needs, expectations and needs, expectations and dreams of itdreams of it’’s employees.s employees.

�� Different attitude to Different attitude to employer/employee employer/employee relationshiprelationship

�� Differs within roles and areas.Differs within roles and areas.

A relatively new concept in Talent Management is the Employment Value

Proposition (EVP).

Most organisations have, over the past few years, incorporated a Customer Value

Proposition into their mission, values and objectives, and most sales

organisations will know of “Unique Selling Propositions”.

The EVP is a statement of what the organisation will offer current and

prospective employees and what it expects from these employees. As such, it is

the “brand” by which the organisation wants to be known – the “preferred

employer” brand if you will. It is the “agreement” between what an employee

may expect from the organisation in return for their performance on the job.

Necessarily, the EVP may be different depending on the needs and requirements

of different areas and roles within the organisation.

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We have a distinctive EVP that attracts and retains talented people

We have a strong value proposition that attracts customers

We think of our people as volunteers and know we have to try to deliver on their dreams to keep them

We expect people to pay their dues and work their way up the line to get top jobs and big money

EVP

Every manager is responsible and accountable for attracting, developing, exciting, and retaining talented people.

HR is responsible for people management: recruiting, compensation, performance review, succession planning

Having the right talent throughout the organisation is critical source of competitive advantage

Having good people of one of many important performance levers

Talent Mindset

The New WayThe New WayThe Old WayThe Old Way

©© McKinsey & Company, 2001McKinsey & Company, 2001

This slide and the next one presents a comparison between the “old” way of

looking at the employee / employer relationship, and the new way.

It compares the differences in “Talent Mindset” – the traditional way of letting

HR deal with all “people” issues with the understanding today that “talent” now

is a critical source of competitive advantage.

There was no EVP in the “old” way, but there were some unspoken promises

(that may or may not have been honoured).

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We award top performers with opportunities and recognition. We develop and nurture core performers to raise their game, or we move them out (or aside).

Differentiation undermines teamwork

Differentiation

Development is crucial to performance and retention … and it can be institutionalised.

Development happens when you are fortunate enough to get a really good boss

Development happens through a series of challenging job experience and candid, helpful coaching

Development is trainingGrowing leaders

We hire at all levers and look for talent in every field

We hire at entry levels only

Recruiting is more like marketing and selling: it’s a key responsibility of all managers.

Is like purchasing: it’s about picking the best from a long line of candidates

Recruiting

The New WayThe New WayThe Old WayThe Old Way

©© McKinsey & Company, 2001McKinsey & Company, 2001

It compares the “old” way of looking at recruiting with the new need for a

“resourcing strategy” and shows the move from development training as a kind of

“corporate perk” to development training focussed on deliberate competency

requirements.

In the “old” way it was thought disruptive to the team dynamics to single out the

good performers. In the “new” way, it is crucially important to identify and

acknowledge the top performers (always provided that the measures are objective

and linked to organisational strategy). It is equally crucial to identify those that

are NOT performing optimally. They need to either become “engaged” with the

organisation (through deliberate development interventions), or they need to be

“out-placed”!

Remember the Gallup and New Century Financial Corporation research

results!!!!! If your employees are not engaged you are not achieving the customer

satisfaction, productivity or profitability the organisation is capable of achieving!

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• Engaged employees with a positive "can do" entrepreneurial spirit

• Employees supportive of continuous improvement who embrace and understand a culture that utilizes Six Sigma as the "way we work"

• Team players willing to change, adapt, be accountable and take ownership in order to

enhance services

• Individuals with skills, knowledge, experience and a willingness to share them with others

• Exceptional judgment and the ability to treat all people, patients, visitors, co-workers, with respect and dignity consistent with "Follow the Golden Rule"

• Employees willing to exceed job expectations, learn new technologies and understand and support the mission, vision, values and strategic initiatives of the organization

• A faith-based organization with a worthy mission and a proud tradition

• A challenging and stimulating work environment centered around meaningful work with timely open and honest communication

• A collaborative team environment and empowered employees valued for their

entrepreneurial spirit

• Improvement in technology and processes through the continuous assessment of products and utilization of Six Sigma - A national leader in Six Sigma training and education

• Salary, rewards, benefits and education based on individual merit and performance

• A proactive and supportive administration that encourages a culture of mutual respect and development of skills that employees can use throughout their career

What We Expect from You What You Can Expect from Us

This is an example of an actual Employment Value Proposition. It is not shown

here as good, bad or indifferent – it is just an example.

It is from a “faith”-based organisation, but the identity of the actual organisation

and the particular faith have been removed – this is just not important right now.

This should give SOME idea of what to include in the EVP.

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Organisational Effectiveness + Employee SatisfactionOrganisational Effectiveness + Employee Satisfaction

�� A clear, compelling and wellA clear, compelling and well--communicated strategycommunicated strategy

�� An innovative environment that is low An innovative environment that is low in bureaucracyin bureaucracy

�� Challenging work assignments that Challenging work assignments that enable employees to grow their enable employees to grow their capabilitiescapabilities

�� Rewards based, in part, on how well Rewards based, in part, on how well the organisation performs.the organisation performs.

Center for Effective OrganisationsCenter for Effective Organisations

From their research, the Center for Effective Organisations offer these four

criteria for creating BOTH Organisational Effectiveness AND Employee

Satisfaction.

1. Once again the need to have a mission, objectives and strategy for the

organisation and for this to be communicated effectively throughout the

organisation so that employees understand exactly what they are working

towards and why.

2. An environment that allows for more “freedom” and more “flexibility” and

respects their ideas and input.

3. Challenging work assignments that challenge employees to push the bounds

of their capabilities.

4. A reward system that links, at least a part, of the employees remuneration

package to their contribution to organisational achievement.

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10 Steps to Successful Talent Strategy10 Steps to Successful Talent Strategy

�� Create and communicate a clear and compelling strategy Create and communicate a clear and compelling strategy and vision for the companyand vision for the company

�� Identify the core capabilities needed to excel at this Identify the core capabilities needed to excel at this strategy and continuously improve performance (acquire strategy and continuously improve performance (acquire –– develop)develop)

�� Seek the best sources of these skills Seek the best sources of these skills –– globally globally –– and offer and offer opportunities to advance and contributeopportunities to advance and contribute

�� Understand the factors that are most important in Understand the factors that are most important in attracting, retaining, and engaging individuals with these attracting, retaining, and engaging individuals with these key capabilitieskey capabilities

�� RecogniseRecognise that different groups of employees want that different groups of employees want different things from work, and that priorities are likely to different things from work, and that priorities are likely to shift as they get oldershift as they get older


The Center for Effective Organisations also offer these “10 Steps to Successful

Talent Strategy”.

Once again – the need to COMMUNICATE strategy throughout the organisation

is paramount, as is the need to identify the “core” competencies needed to drive

and deliver strategy.

The ability to manage the diversity in the workplace on a more “flexible” basis

also comes up over and over.

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10 Steps to Successful Talent Strategy10 Steps to Successful Talent Strategy

�� Create multiple career paths (technical, rotational, new Create multiple career paths (technical, rotational, new internal ventures, etc.)internal ventures, etc.)

�� Create individual development opportunities to build the Create individual development opportunities to build the capabilities that create maximum value for employees and capabilities that create maximum value for employees and the companythe company

�� Hold employees and management accountable for Hold employees and management accountable for meeting development objectives and sharing the meeting development objectives and sharing the knowledge they gain with the organisationknowledge they gain with the organisation

�� Tie rewards and recognition to organisational and team Tie rewards and recognition to organisational and team performance and enhancement of skillsperformance and enhancement of skills

�� Seek opportunities to rapidly enhance the companySeek opportunities to rapidly enhance the company’’s s talent through strategic acquisitions, recognising that they talent through strategic acquisitions, recognising that they need to be managed differently to need to be managed differently to ““traditionaltraditional”” acquisitionsacquisitions


The concept of “multiple career paths” is not new, but, since the early 1990’s has

become even more important because the traditional “up the ladder” now has

fewer positions. But employees need to feel that they are “progressing”.

The need for line management to be responsible for retention and performance is

fairly new, especially in IT, but also appears consistently throughout the research

for effective talent management.

The suggestion that an organisation should mount a take-over bid on the basis of

taking over the skills base of another organisation might seem a bit foreign to

South African organisations – a whole new take on “Barbarians at the Gate”!! I

watch with anticipation.

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8 Elements of High8 Elements of High--Retention CompaniesRetention Companies

1.1. Clear sense of direction and purposeClear sense of direction and purpose

2.2. ““CaringCaring”” management management –– Leadership!!Leadership!!

3.3. Flexible benefits Flexible benefits –– adapted to individual adapted to individual needsneeds

4.4. Open communicationOpen communication

5.5. Charged work environmentCharged work environment

6.6. Performance managementPerformance management

7.7. Reward and recognitionReward and recognition

8.8. Training and developmentTraining and development


Greg Smith in his book “Here today, Here tomorrow” lists these 8 elements of

High-retention companies.

I won’t list in detail, but some are worth noting – for their repeated appearance on

these unassociated researches

•communication of organisational goals and mission

•flexible benefits

•performance management – linked to organisational performance!

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Roadmap to Employee EngagementRoadmap to Employee Engagement

�� Enhance LeadershipEnhance Leadership

–– Have a visionHave a vision

–– Communicate clearly and persuasivelyCommunicate clearly and persuasively

–– Be consistent in achieving the visionBe consistent in achieving the vision

�� Protect ReputationProtect Reputation

Effective Communication > Engaged Effective Communication > Engaged Employees > Loyal Customer > Employees > Loyal Customer >

Improved ProfitabilityImproved Profitability

Article: Any ParsleyArticle: Any Parsley

Another article on this subject provided this “roadmap” to employee engagement

– an important element of retention.

The article suggests that effective communication leads to engaged employees

which leads to loyal customers which leads to improved profitability!

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IES Diagnostic ToolIES Diagnostic Tool

Source: IESSource: IES

IES provide this “diagnostic tool” for employee engagement. They suggest that

engagement is dependent on the employee “felling valued and involved”. The

elements of Talent Management are listed in order of importance.

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10 C10 C’’s of Employee Engagements of Employee Engagement

�� ConnectConnect –– If employee relationship with If employee relationship with manager is not good manager is not good –– nothing else will nothing else will matter!matter!

�� CareerCareer –– Provide challenging and meaningful Provide challenging and meaningful work with opportunities for career work with opportunities for career advancementadvancement

�� ClarityClarity –– Communicate a clear vision, goals Communicate a clear vision, goals and objectivesand objectives

�� ConveyConvey –– Establish processes and Establish processes and procedures that help and provide feedback on procedures that help and provide feedback on performanceperformance

�� CongratulateCongratulate –– Acknowledge, acknowledge, Acknowledge, acknowledge, acknowledgeacknowledge

Ivey Management ServicesIvey Management Services

Ivey Management Services provide the “10 C’s of Employee Engagement”

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10 C10 C’’s of Employee Engagements of Employee Engagement

�� Contribute Contribute –– Enable employees to feel Enable employees to feel involved and valuedinvolved and valued

�� ControlControl –– Create opportunities for influence, Create opportunities for influence, autonomy and selfautonomy and self--managementmanagement

�� CollaborateCollaborate -- Build a strong team cultureBuild a strong team culture

�� CredibilityCredibility –– Ensure management maintains Ensure management maintains companycompany’’s reputation and demonstrates high s reputation and demonstrates high ethical standardsethical standards

�� ConfidenceConfidence –– Create confidence in the Create confidence in the company by example and high performance company by example and high performance credibility and standardscredibility and standards

Ivey Management ServicesIvey Management Services

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Measuring Employee EngagementMeasuring Employee EngagementI know what is expected of me in my job

I have the materials and equipment I need to do my job well

My manager is fair

My manager values me as much as he or she values our customers

Promotions are handled fairly Basic Job

People in my work group are protected from health and safety issues

I am aware of career opportunities in our company that are appropriate to my interests and abilities

My manager helps me with my development needs and career progress

My manager actively listens to me and is open to my suggestions and concerns

Our recognition system promotes both individual and team performance Growth and

Development

My work gives me a feeling of personal accomplishment

I understand my company’s long-term goals and priorities

I would recommend my company as one of the best places to work

When management tells us they will do something, they do it

Senior management gives employees a clear picture of the direction in which the company is headed

Organisational

Commitment

There is co-operation between my work group and other work groups in the company

Gallup created their Q12 questionnaire for surveying “employee engagement”.

Q12 is the copyright of and trademarked to the Gallup Organisation.

Derivatives of this questionnaire have been developed, one by Accord

Management Systems. They suggest that a questionnaire be developed covering

3 “tiers”:

•Basic – addresses the basic needs of the jobs

•Intermediate – addresses growth and development needs, and

•Advanced – addresses organisational commitment needs.

Above is an example of an employee engagement questionnaire based on these

three tiers.

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Implementing a HighImplementing a High--Retention WorkplaceRetention Workplace

1.1. Hold People AccountableHold People Accountable

�� Supervisors accountable for departmentSupervisors accountable for department

�� HR accountable for supervisor trainingHR accountable for supervisor training

2.2. Assess the OrganisationAssess the Organisation

�� Regular, informal by supervisorRegular, informal by supervisor

�� TwiceTwice--yearly, formal, writtenyearly, formal, written

3.3. Measure what is Important!Measure what is Important!

�� PerformancePerformance

�� EngagementEngagement

�� TurnoverTurnover


The “last word” (at least in terms of this workshop) comes from “Here Today,

Here Tomorrow” by Greg Smith. From his many years experience

specialising in this field, he has found that it is important to “institute” a

formal retention program to:

• Help focus on and prevent the issues that cause people to leave, and

• To transform people into more productive employees.

These are his “6 steps” to a retention process.

1. The first step is recognising that HR is NOT SOLELY responsible – others

share the responsibility for finding, keeping and motivating the workforce.

But HR remains responsible for creating new an innovative strategies that

encourage people to perform at their maximum performance level.

2. Next is implementing assessments to identify potential retention problems.

Both regular, informal assessments by management and formal twice yearly

written assessments. All performance assessments should be done taking into

account other “life changes” that an employee may be going through, such as

change in marital status, deaths in family, births, etc.

3. “What gets measured, gets done”. Good measurement can identify customer

satisfaction, time to fill vacancies, promotions from within, etc – to identify

possible causes of staff turnover.

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Implementing a HighImplementing a High--Retention WorkplaceRetention Workplace

4.4. Increase employee Ownership and InvolvementIncrease employee Ownership and Involvement

�� Participation and sharingParticipation and sharing

5.5. Build Relationships and Create a Positive First Build Relationships and Create a Positive First ImpressionImpression

�� Begins in the first week of employBegins in the first week of employ� Preparation

� Orientation

� Introduction

6.6. Devise Intervention StrategiesDevise Intervention Strategies

�� No Surprises!No Surprises!

�� Limit counteroffers (32% leave within 6 months)Limit counteroffers (32% leave within 6 months)

�� Keep the door openKeep the door open

�� PostmortemPostmortem


4.Employees need to feel a sense of “ownership”, they need to “know” that their

contributions have a direct impact on the performance of the organisation.

5.The relationship between organisation and employee starts in the first week of

employ. “Inboarding” is an important element of employee retention.

6.Finally, create “intervention” strategies that help to identify possible “leavers”

early in their “job search” cycle, that “keep the doors open” as often employees

DON’T solve their “problems” by going to a new job, and conduct review 60-

and 90-days AFTER the employee has left. This will help to establish the REAL

reasons for their turnover.

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Parting ThoughtParting Thought

““Great organizations achieve sustainable growth and Great organizations achieve sustainable growth and profits because they do what other organizations don't: profits because they do what other organizations don't: they maximize the innate, individual talents of their they maximize the innate, individual talents of their

employees to connect with customersemployees to connect with customers..

They know that tapping the resources of humans is the They know that tapping the resources of humans is the only remaining area where significant improvements canonly remaining area where significant improvements can----

and doand do----lead to an unlimited source of competitive lead to an unlimited source of competitive advantages.advantages.””

Curt Coffman, Gabriel GonzalezCurt Coffman, Gabriel Gonzalez--Molina, in Molina, in Follow this Path Follow this Path 20022002

I leave you with this thought.

The Human Capital element of most organisations today is the “source” of

revenue and growth. Organisations from now onwards need to understand better

how to maximise this resource for the benefit of BOTH the organisation AND the

resource itself.

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About About TalentAlign.comTalentAlign.com

�� Alignment of IT Talent Strategy with Alignment of IT Talent Strategy with Organisational StrategyOrganisational Strategy–– ““Free to ViewFree to View””

� Articles

� Presentations

� Research

�Workshops

–– Revenue GeneratingRevenue Generating� +120 Role Profiles

� IT Role Progression Matrix

� Competency Framework

� Competency Management System

� Consulting Services

About TalentAlign.com

The role of HR is fast changing. It is no longer an administrative function, but is fast becoming a strategic role to ensure return on the organisation’s investment in human capital.

TalentAlign.com is set up to provide information on IT Talent Management to assist the HR professional with the alignment of IT Talent Strategy with Organisational Strategy.

There are a number of articles, presentation, etc. that are “free-to-view”. These will provide information that is general to HR, but applied specifically to the IT organisation.

As with any “business” there has also to be a “revenue-generating” opportunities.

To this end we have created over 120 “Role Profiles” for specific, definable “roles” in IT. These are roles that can be expected to be found in ANY IT organisation, irrespective of size. Organisations will structure these roles into jobs, depending on the needs of the organisation – including size. These Role Profiles are customisable online so that our clients are able to produce comprehensive Job Descriptions for virtually any IT role in the organisation – including “multi-skilled” roles.

Also available is our incredibly useful “IT Role Progression Matrix”. This document shows how roles progress over a number of popular grading systems used by organisations. This is extremely useful for Career Management as well as Remuneration Planning.

In producing the IT Role Descriptions, we also produced a Competency Framework – a framework of competencies applicable to IT. It consists of 87 IT competencies and 72 non-IT competencies required in an IT environment. This framework is available for incorporating into an organisations Competency Management System.

We are in the process of incorporating our IT Competency Framework into a Competency Management System for organisations that do not have such a system.

We also perform consulting services for our clients including:

•Assistance with IT Organisation Design

•Creating Job Descriptions

•Creating Competency Profiles

•Remuneration Strategy

•Talent Management Strategy

•Performance Improvement

For information on the IT Competency Framework, the Competency Management System or our consulting services, please email us on [email protected].

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Contact DetailsContact Details

Gail Gail SturgessSturgess

083 654 6480083 654 6480

[email protected]@workcentric.com

These are my contact details should anyone want to get in contact with me to

discuss this issue further, or if you would like to enquire about the IT Role

Profiles and Competency Framework available on www.talentalign.com.

200705 IT Talent Attraction and Retention Workshop · IT Talent Attraction and Retention Workshop...

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